Addvantage Technologies Group, (NASDAQ:AEY)

Addvantage Technologies Group , (NASDAQ:AEY) ($1.24; $15.7M market cap),  a communications infrastructure services and equipment provider announced Q1 2022 results:

• Sales of $18.7 million vs $12.7 million in the prior year
• Net loss of $0.16 vs loss of $0.16 in the prior year

“We have moved quickly to ramp capabilities to meet the growing demand for 5G-related tower work, as our wireless segment delivered its second consecutive quarter of revenue greater than $7 million, even with weather and holiday-related interruptions, and we anticipate further growth as we move through calendar 2022,” commented Joe Hart, Chief Executive Officer. “The ramp up and entree into the new markets adversely effected margins for Q1 and into Q2 of this fiscal year. With our ramp up largely complete, we are now squarely focused on effectively aligning resources for demand, and improving operational efficiency and reducing general and administrative expenses, to drive margin expansion. We expect further growth in both revenue and margin expansion in the last half of the year.”

As we mentioned after the Q4 release, despite the strong revenue growth, until the company reaches profitability, investors will remain extremely cautious as the company’s liquidity position remains an issue. The path to profitability has been pushed back over the last several quarters, originally slated for this quarter, and now it seems like a possible Q3 2022 event. We will be on the conference call later this morning to see if management offers any more color on this issue. 

Addvantage Technologies Group, (NASDAQ:AEY) ($3.31; $39.8M market cap), a communications infrastructure services and equipment provider announced Q1 2021 results:

• Sales of $12.7 million vs $14.0 million in the prior year period
• Net loss of $0.16 vs net loss of $0.17 in the prior year

“The first fiscal quarter was impacted by the typical seasonality in our wireless segment, as the winter weather, the holidays and the lack of specialty work impacted revenue and margins...

...Our sales and bid activity are picking up as we continue to see accelerating demand in anticipation of the 5G roll-out, though the velocity has yet to reach desired levels. We are prudently ramping our crew capacity in anticipation of expected demand, an initiative we undertook based on a high level of confidence that we will win projects to effectively utilize this capacity. We currently expect the second half of calendar 2021 to benefit from the higher volumes, and our business is scaled to drive improvements in profitability based on these expected levels...

...We have confidence in our plan as we move through 2021 with an improved balance sheet, an experienced management team, and are strategically well-positioned to capture a meaningful share of the 5G infrastructure buildout that is expected to be realized this year.”

Addvantage Technologies Group, (NASDAQ:AEY) ($2.22; $23.2M market cap), a communications infrastructure services and equipment provider, announced Q2 2020 results:

• Sales of $12.0 million vs $12.9 million in the prior year
• Non-GAAP loss of $0.56 vs loss of $0.12 in the prior year

“While we continue to see strong drivers in the need for 5G networks, immediate and near term activity has slowed industry wide significantly impacting our Fulton business and leading to lower operating margins and net losses,” commented Joe Hart, Chief Executive Officer. “In addition, our Nave and Triton businesses experienced softening sales during the quarter. This is not unexpected given the challenges in a COVID-19 environment, but with a view towards the long term we continue to improve operations and personnel to position us for profitable growth as the economy recovers. We are fortunate that our businesses are classified as ‘essential services’ and are allowed to continue operations in either providing needed network equipment or installing or maintaining cellular network communications...

..We see flat revenue performance in our Wireless segment in the second half of the fiscal year due to a lack of visibility on the timing of 5G buildout,” Hart continued. “We made several recent leadership changes at Fulton to address operational issues which significantly impacted our direct costs in the second quarter and should see a return to normalized gross margins. These operational challenges should be behind us. In our Telcom segment, Triton and Nave often perform well in a challenging economy as businesses look to repair instead of replace existing telephony systems.”